Zambia Interest Rate Spread
Interest rate spread (lending rate minus deposit rate) FR.INR.LNDP
Zambia's interest rate spread was 0.76% in 2020, ranked 2nd globally. This represents a 61.9% decrease from 2019. Data from World Bank, covering 1978–2020.
Overview
Zambia's interest rate spread stood at 0.76% in 2020, a decline of +1.24pp from 2019. Zambia ranked 2nd globally.
Zambia’s interest‑rate spread has contracted dramatically over the 43‑year series, falling from a 1978 high of 2.00 % to an all‑time peak of 25.17 % in 1993 before reaching its lowest recorded level of 0.76 % in 2020, the second‑lowest spread among the World Bank sample. The sharp decline after the early‑1990s reflects liberalisation of the banking sector, reduced inflation volatility and tighter monetary policy that narrowed the gap between lending and deposit rates. By contrast, peer economies such as Argentina posted a spread of 0.07 % and Oman 1.43 % in the same year, underscoring Zambia’s comparatively modest margin. The 2020 trough suggests a more efficient credit market, yet any resurgence of fiscal deficits or external shocks could widen the spread again. Maintaining fiscal discipline and deepening financial intermediation are likely to keep the spread low, supporting continued credit growth.
Data & projection
| Year | Interest Rate Spread | YoY change | Rank |
|---|---|---|---|
| 2020 | 0.76% | −1.24pp | #2 |
| 2019 | 2.01% | −0.99pp | #10 |
| 2018 | 2.99% | −0.50pp | #21 |
| 2017 | 3.49% | −1.23pp | #37 |
| 2016 | 4.72% | +0.46pp | #47 |
| 2015 | 4.26% | +0.56pp | #48 |
| 2014 | 3.70% | +0.67pp | #38 |
| 2013 | 3.03% | −2.12pp | #32 |
| 2012 | 5.15% | −6.66pp | #50 |
| 2011 | 11.81% | −1.70pp | #110 |
| 2010 | 13.52% | −1.46pp | #113 |
| 2009 | 14.97% | +2.46pp | #113 |
| 2008 | 12.51% | +2.84pp | #111 |
| 2007 | 9.67% | −3.15pp | #101 |
| 2006 | 12.83% | −4.19pp | #109 |
Detected Pattern
Analysis
Zambia matched the Export Boom Cycle pattern in 2021. Historically, 71% of countries showing this pattern (546 out of 768) saw interest rate spread improve within 24 months. View full analysis →
Frequently Asked Questions
Zambia's interest rate spread was 0.76% in 2020. Ranked 2nd globally. This represents a 61.9% decrease from the previous year.
Zambia's interest rate spread peaked at 25.17% in 1993.
The lowest interest rate spread in Zambia was 0.76% in 2020.
Zambia ranks 2nd globally in interest rate spread as of 2020.
The World Bank indicator code is FR.INR.LNDP. Data sourced from World Bank.
The interest rate spread of Zambia in 2020 was 0.76%. This ranks 2nd in the world.
Cite this page
@misc{historysaid_zambia_interest-rate-spread,
title = {Zambia Interest Rate Spread},
url = {https://historysaid.com/zambia/interest-rate-spread/},
publisher = {HistorySaid},
year = {2026}
}